How can you save when you only make enough to pay your bills?
So many people ask me HOW? How am I able to save consistently every single time I get paid. Especially when I don’t make much money, in a few short words “I have a side hustle”. Over the course of taking a job for less money I knew I would have to find a way to continue saving to reach my goal. Honestly I wonder myself how I have time to check off daily, weekly and monthly goals. Between school, work, selling life insurance part-time, balloon decorating part-time and being a parent I am often spread thin. My short term goal is to save $15,000 to purchase our first rental home THIS year and be able to start our “cash flow”. Cash flow is the amount of profit that we will bring in each month after collecting all income, paying all operating expenses, and setting aside cash reserves for future repairs on the rental that we will be purchasing.
How to Calculate Cash Flow
An example of a simple equation:
Cash flow = gross rental income – all expenses and cash reserves
Monthly rental income: $900
Monthly operating expenses:
- Mortgage: $310
- Property taxes: $90
- Insurance: $75
- Property management: $70
- Vacancy reserves: $50
- Repair reserves: $100
Total monthly expenses: $695
Cash flow: $205 = $900-$695
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Budgeting While Making Cents 